Wipro Down 8%; Reliance and ICICI Bank Emerge as Top Drags on Nifty50
Indian equity markets ended Monday’s session on a weak note after earnings from three heavyweight companies — Wipro, Reliance Industries and ICICI Bank — failed to meet investor expectations. Despite reporting year-on-year growth in revenue for the December quarter, concerns around profitability, margins and future outlook weighed heavily on sentiment.
Shares of Wipro plunged nearly eight per cent, while Reliance Industries and ICICI Bank also closed lower, collectively dragging the Nifty50 index down by half a per cent to 25,557.30 points. The impact was amplified by the sheer index weight of these stocks, with ICICI Bank and Reliance alone accounting for about seventeen per cent of the benchmark.
Why the Market Reacted Sharply
At first glance, the earnings numbers did not look alarming. All three companies posted revenue growth on a year-on-year basis. However, markets are rarely satisfied with surface-level growth. Investors were quick to focus on the quality of earnings, margin trends, and management commentary.
In Wipro’s case and ICICI Bank’s results, the disappointment was more direct, with net profit declining year-on-year. For Reliance Industries, profits were largely flat, raising questions about growth momentum across its diverse business segments.
These concerns proved enough to trigger selling, especially in a market that has recently been sensitive to earnings misses and cautious guidance.
Wipro: Sharp Fall After Profit Decline
Wipro was the biggest casualty of the day. The IT major reported a fall in net profit for the December quarter, even as revenues showed modest growth. The stock reacted immediately, ending the session down nearly eight per cent, making it one of the worst performers on the Nifty50.
Investors were particularly concerned about pressure on margins, sluggish demand in key overseas markets, and continued uncertainty around discretionary IT spending. While management maintained that demand conditions could stabilise over time, the lack of a clear near-term recovery narrative did not reassure the market.
The sharp sell-off also reflects broader caution around the IT sector, where clients continue to delay large technology transformation projects amid global economic uncertainty.
ICICI Bank: Profit Dip Raises Questions
ICICI Bank, one of India’s largest private lenders, also ended lower after reporting a decline in net profit on a year-on-year basis. Although the bank’s revenue growth remained intact, investors were wary of higher costs and moderation in profitability.
Market participants pointed out that while asset quality remains stable, rising competition in lending and pressure on margins could weigh on future earnings growth. Given ICICI Bank’s heavy weight in the index, even a modest decline in its stock price had a noticeable impact on overall market performance.
The reaction highlights how banking stocks, despite strong balance sheets, are now being judged more strictly on earnings quality rather than headline growth.
Reliance Industries: Flat Profit Growth Disappoints
Reliance Industries reported largely flat profit growth for the December quarter, which fell short of market expectations. While revenues increased, investors were hoping for stronger performance from key segments such as energy, retail and digital services.
Concerns around refining margins, capital expenditure intensity, and muted near-term returns from new businesses weighed on sentiment. The stock ended lower, adding to the downward pressure on the Nifty50.
Given Reliance’s role as a market bellwether, even small movements in its share price tend to influence broader indices.
Combined Impact on Nifty50
The combined effect of weakness in Wipro, ICICI Bank and Reliance Industries was significant. Together, these stocks account for a large portion of the Nifty50, and their decline was enough to outweigh gains in several other index constituents.
Here is a snapshot of how these stocks influenced the market:
| Stock | Key Issue Highlighted | Market Reaction |
|---|---|---|
| Wipro | Net profit decline, margin pressure | Sharp fall |
| ICICI Bank | Profit dip, margin concerns | Moderate decline |
| Reliance Industries | Flat profit growth | Mild decline |
The data shows that even in the absence of a broad-based sell-off, weakness in a few heavyweights can pull the entire index lower.
Broader Market Sentiment
Monday’s session reflected a cautious tone across the market. Investors are becoming increasingly selective, rewarding companies that deliver strong earnings visibility while punishing even minor disappointments.
With several large companies having reported results over the past few weeks, the market appears to be shifting from optimism to scrutiny. Earnings growth alone is no longer enough; guidance, margins and balance-sheet strength are now equally important.
This trend could continue as more companies announce results, keeping volatility elevated in the near term.
What Investors Are Watching Next
Looking ahead, investors will closely track management commentary from major corporates for signals on demand recovery, cost pressures and capital expenditure plans. Global factors, including interest rate expectations and economic data from the United States and Europe, will also play a role in shaping sentiment.
For stocks like Wipro, ICICI Bank and Reliance Industries, future performance will depend on how quickly concerns around profitability and growth visibility are addressed.
Conclusion
The sharp fall in Wipro and declines in Reliance Industries and ICICI Bank underline how unforgiving markets have become during this earnings season. Even with revenue growth on the table, weak profit trends and cautious outlooks are being penalised.
With heavyweight stocks dragging the Nifty50 lower, the session served as a reminder that index movements are often driven by a handful of large names. As earnings season continues, investors should brace for more stock-specific reactions rather than broad market moves.
Click Here to subscribe to our newsletters and get the latest updates directly to your inbox.